HealthEquity Inc. Reports Strong Q2 Results

DRAPER, Utah – HealthEquity Inc. (NASDAQ:HQY) reported better-than-expected second quarter results and raised its full-year guidance, driven by notable growth in accounts and assets under management.

HQY shares saw a slight increase in Tuesday’s aftermarket session following the announcement.

The company recorded adjusted earnings of $0.86 per share for the quarter ending July 31, surpassing analyst estimates of $0.70 per share. Revenue climbed 23% YoY to $299.9 million, exceeding the expected $285.13 million.

“Team Purple delivered an outstanding second quarter, increasing HSAs and HSA Assets by 15% and 27%, respectively,” said Jon Kessler, President and CEO of HealthEquity.

Total health savings accounts grew to 9.4 million, reflecting a 15% increase from the previous year. Total HSA assets reached $29.5 billion, a 27% YoY increase. The company added 187,000 new HSAs during the quarter.

For fiscal 2025, HealthEquity has adjusted its earnings forecast to $2.98 to $3.14 per share, up from the previous outlook of $2.48 to $2.66. Revenue expectations have also been raised to a range of $1.165 billion to $1.185 billion, compared to the earlier forecast of $1.14 billion to $1.16 billion.

The improved outlook reflects “momentum in both topline growth and margin expansion,” according to Kessler. The company plans to leverage this stronger performance to accelerate platform investments and introduce new products.

HealthEquity has also unveiled a $300 million share repurchase program, underscoring confidence in its financial position and growth prospects.

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